FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ashburton Small Business Loans
Let me know more about Ashburton Small Business Loans
Ashburton unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. We offer a business loan is an upfront priced loan and you’ll know in advance the total amount payable including any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Ashburton Business Loans
What is the Larger Ashburton Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for at least three years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funding be used for?
A large company loan can be used for nearly every business purpose including company remodeling, buying inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by taking a charge against assets and can include registering this with the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than stipulating security over a particular asset. The person who is signing the guarantee is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest has been registered.
An affidavit is an official document lodged to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250K or more we can offer an initial pre-approval that will help smooth out the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health questions. It’s not an offer of credit or guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be on different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a couple minutes, and an experienced company credit specialist will contact you to guide you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour – as long as you make your application within standard business time and allow us to use the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements , we will be able to provide a decision in just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. You can also permit us to use the advance bank verification link to verify your bank information online. If you choose to send us documents from your account statements it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often provide a response in one hour if you apply within normal business timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to offer the decision in just one business day.
For Larger Business Loans ($100K to $500K) we may be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, allow us to use the modern bank verification to check your bank’s information online. If you opt to upload copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of elements in order to assess the health of the business and the level of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances the company.
When you make an application for a particular amount, we take into consideration a variety of variables to assess how much we can lend you such as health of the business and the extent of the repayments your company will be able to support. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for the company loans, we’ll assess the risk profile that you have for your business and provide you with a customised proposal that includes loan amount, term and interest rates. A company loan is an upfront cost loan so you will know in advance the total amount you will have to pay, including charges or interest.
What is the basis for the rate I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the business assets the money are used to purchase as well as the field the company operates in, the long the company has been in operation and whether the company has sufficient cash flow to fund the loan, and general health or financial standing of the company.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what you need to pay, and at what time, from day one. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan early at any time.
If you decide to take this route, please call our helpful business credit professionals. They will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining and the accrued interest up to the time of early payment and 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather the information we collect, use, share and protect your information, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner utilises the assets they have to secure the funds for a loan. The asset can be a personal asset like the family home, or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it is means of securing new financing by using the value of what you already have.
What do I require security to secure an company loan?
For loans up to $150K the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 generally there is a personal ensure and security in the form an asset charge.